Operation and Project Management
OPM CASE 2 [LO 3 & 4]
Hotel Construction Scenario Jan 2019
John and Jane have an established and successful business running a restaurant in Docklands, London. During the week customers are mainly corporate and office workers, and at weekends they are busy with local customers. Even though, the recession, Brexit and political instability in UK has not favoured the hospitality sector, they made 1 £million profit last year, raising the partner’s capital base to £2.5 million. As part of their long term strategy to expand into the hospitality sector they plan to invest in a 5 star hotel to serve both the local community, business customers and visitors to London. They have already approached their bank manager who is willing to provide them with a loan of £2 million at an interest rate of 6%. Preliminary estimates of initial capital cost are £4m for the Hotel Some of the staff go to evening classes and have come across the term ‘Project Life Cycle [PLC]’; they are interested in how to practically apply the PLC to the planned Hotel Project, and would like a review and critique of the application of the PLC to the Hotel Project. You have agreed to prepare a structured narrative and portfolio of evidence on this.
OPM GUIDANCE CASE 2 Jan 19 v2 [P3, M3, P4 & M4]
Task 2 Prepare a structured narrative, together with related portfolio of evidence in the appendix covering the following:
2.1 V. briefly summarise the case study &
2.2 Apply each stage of the PLC to this project, prepare supporting documents and put these in an Appendix after References as follows:
Doc 1] business case, Doc 2] project plan, Doc 3] work breakdown structure, Doc 4] Gannt Chart with Critical Path LO3 P3
PROJECT LIFE CYCLE
Application of each stage of PLC to case:
Stage 1 Project Initiation [including Project Definition]
Outline the circumstances of Project Initiation; eg background, purpose and rationale including motivation, as stated in the scenario, you can develop this scenario. Obviously having required funds is essential.
See: Doc 1 Business Case. [in appendix] Create a Business Case around the Hotel scenario provided.
Stage 2 Project Planning [including Detailed Planning]
Write a summary of the purpose and expected contents of a Project Plan. Refer to Doc 2 & Doc 3 you have inserted in the Appendix
See: Doc 2 Project Plan [in appendix] Use Outline Project Plan provided to develop an overview plan.
See: Doc 3 Work Breakdown Structure (WBS) [in appendix]
Use the sample WBS to be provided as basis for Monitoring & tracking ongoing Project execution in Stage 3
Stage 3 Project Execution [including Monitoring & Control]
Write a very brief outline of the use of the Project Monitoring Tools of Gannt Chart, & Network diagram.
Leave detailed application to Case and explanation of critical path and float for T 2.3 re M3
We will use Serena Openproject as Project Monitoring Software. In our Lab session you will enter details from the WBS arising from detailed Planning [as per Doc 3 above] onto Openproject. You will create & appropriately size the Gannt chart; and with same WBS create & appropriately size a corresponding Network Diagram. In Open Project Critical activities are red, while Non Critical activities are blue. Leave explanation of critical Path & non critical activities to Task 2B. Copy & Paste a screen shot of this, save as Doc4 for appendix]
See: Doc 4 Gannt Chart with Critical Path [in appendix]
Stage 4 Project Closure [including Project Review]
Write an outline of the expected events at Stage 4 of the plc [See W5 ppt re Project Closure & Review]
- Examine the rationale for use of WBS, project management software, and leadership for the Hotel Project LO3 M3
Here you consider whether the methodology, tools and leadership concepts are a useful way of going about a Project. Do they help or hinder successful completion.
Ref: 1] Methodology: explain & analyse benefits [& possible drawbacks] of the WBS [see h/o]
2] Tools: explain & analyse: Gannt Chart, Network Diagram, state the Critical Path, analyse the significance of this. Are there any particular benefits of using Project Management software for Project monitoring & control ?
3] Leadership – explain & analyse; are leadership as distinct from management qualities useful for or essential for successful Project completion [See W5 3.2 leadership ppt]
- How would you justify the time and cost taken by the Project Manager in ensuring systematic recording of each stage of the PLC, referring to appropriate theories models and concepts. LO4 P4
The relevant theories, models and concepts to use are those covered in 2.2 – 2.3. Analyse how effective these are when applied to the given case.
Essential elements within the PLC have been explained & analysed in 2.2 – 2.3 above;
Here you have to carefully analyse each stage of the PLC in turn and consider how it helps to progress the project in an orderly and cost effective way .
Stage 1 Project Initiation > Definition. What are the key issues? What is significance of Business Case as identified in Doc 1
Stage 2 Project Planning > Detailed Planning. Why are Doc 2 & Doc 3 so important ?
Stage 3 Project Execution > Monitoring & Control Considering how Stage 3 increases chances of successful project completion; it is important to consider how use of the stages & documentation help if Project stops
Stage 4 Project Closure [& Project Review] How will this stage benefit the sponsors John & Jane ? How will it also benefit the Main Project Contractor ?
2.5 Compare and contrast how the use of relevant theories models and concepts will be applied differently for large and small scale projects. LO4 M4
Apply the theories, models and concepts: at 2.2 – 2.4 above to differentiate between large and small-scale projects. Include analysis of methods of Performance measurement [see W8 slides]
2.6 Review and critique the effectiveness including justifications of the PLC in application to this project using appropriate theories models and concepts’. LO3 & 4 D2